Operating Profit Percentage

Knowledge Center



Summary, forum, best practices, expert tips and information sources.

12 items • 294.776 visits


Summary

Operating Profit Percentage

What is Operating Profit Percentage? Definition

The Operating Profit Percentage reveals the return from standard operations, excluding the impact of extraordinary items and other comprehensive income.

It shows the extent to which a company is earning a profit from standard operations. As opposed to resorting to asset sales or unique transactions to post an 'artificial' profit.


 

Calculation of the Operating Profit Percentage. Formula

Calculation of the Operating Profit Percentage is straightforward: subtract the costs of goods sold, as well as all sales, general, and administrative expenses, from sales. Divide the result by sales.



To obtain a percentage that is related strictly to operational results, be sure to exclude interest income and expense from the calculation, since these items are related to a company's financing decisions rather than its operational characteristics.



Expense totals used in the Operating Profit Percentage ratio should exclude extraordinary transactions, as well as asset dispositions, since they do not relate to continuing operations.


Special Interest Group

Join

Operating Profit Percentage Special Interest Group.



Special Interest Group (16 members)

Forum

New Topic

Forum about the Operating Profit Percentage.


🔥 NEW How can you calculate Operating Ratio in case of services firm?
I need help to calculate the operating profit ratio (OPP) of a service firm as there are no good (...)
5
 
1 comments

Start a new forum topic about the Operating Profit Percentage. More info.

 

Best Practices

Sign up

The top-rated topics about the Operating Profit Percentage. Here you will find the most valuable ideas and practical suggestions.


Expert Tips

Sign up

Advanced insights about the Operating Profit Percentage. Here you will find professional advices by experts.


Information Sources

Sign up

Various sources of information regarding the Operating Profit Percentage. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.


Financial Statement Analysis | Ratio Analysis

Ratio Analysis, Finanical Statement Analysis
This presentation provides insights in Financial statement and ratio analysis, and includes the following sectios: 1. F (...)

OPP Diagram

Determining the return from standard operations
Download and edit this 12manage PowerPoint graphic for limited personal, educational and business use. Republishing in (...)

Research Links

Sign up

Automatically jump to further useful sources regarding the Operating Profit Percentage.


News Videos Presentations Books More

News

Videos

Presentations

Books

More


Compare with Operating Profit Percentage:  Gross Profit Percentage


Return to Management Hub: Finance & Investing


More Management Methods, Models and Theory

Special Interest Group

Do you have a keen interest in the Operating Profit Percentage? Become our SIG Leader

 


About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2021 12manage - The Executive Fast Track. V15.8 - Last updated: 4-8-2021. All names ™ of their owners.